FEATURED ARTICLES ABOUT PRECIOUS METALS - PAGE 4

KOLKATA: The falling sales in automobile industry in the first half of 2011 has caused concern for the precious metals like palladium, platinum and rhodium, which are used in the industry. Market expects a drop in prices of these metals if the automobile demand slows down across the globe. Prices right now are volatile and a production cut in these metals may put a check on sliding prices. Talking to ET, Sudam Maitra, managing executive officer (supply chain) of Maruti Suzuki, said: "Prices of precious metals not only depend on physical demand but also on the quantum of trading.

Precious metals (especially gold) are being used as hedging instruments in these turbulent conditions across the globe. The price of gold has gone up steadily since the last few years, and it is trading close to its all-time high. Historically, precious metals have been seen as a haven for risk-averse investors and therefore, the prices of precious metals shot up during the financial crisis when the risk appetites decreased. Here are some major factors that drove the prices of precious metals up during the last couple of months: Negative sentiments : The negative sentiments triggered by the financial crisis in the global economies is one of the main drivers of precious metal prices in the recent past.

LONDON: Gold headed for its longest run of gains in more than two years as Saudi Arabia and its allies started bombing targets in Yemen , boosting demand for a haven. Gold gained 1 per cent to USD 1,207.84 an ounce, rising for a seventh day in the longest run since August 2012. Silver for immediate delivery increased 1 per cent to USD 17.14 an ounce in London, after touching $17.40, the highest since February 16. Platinum rose 1.2 per cent to USD 1,159.25 an ounce and palladium advanced 1.2 per cent to $774.50 an ounce.

Both the precious metals', gold and silver, prices rose in the national capital today on fresh buying by stockists and jewellers on the eve of Akshaya Tritiya. While gold rose by Rs 30 to Rs 29,070 per 10 gm, silver went up by Rs 75 to Rs 56,575 per kg on increased offtake by industrial units and jewellery makers. Traders said buying by stockists and jewellers picked up for the 'Akshaya Tritiya, considered to be an auspicious day in hindu mythology for making token purchases in precious metals . They said some demand for the ongoing marriage season and shifting of investor's funds from stocks to bullion also supported the uptrend.

NEW YORK: Precious metals rose modestly on Monday as twin concerns of a falling dollar and rebounding oil prices fed demand for alternative investments as inflation hedges. Crude's slight gains helped boost other commodities, with corn, soybeans and other agriculture futures trading higher. The dollar tumbled against the euro and other major currencies Monday after news that the US budget deficit is poised to hit record this year fanned fears of a more protracted US economic downturn.

LONDON: Surging dollar and easing crude oil prices eroded demand for precious metals in overseas markets on Tuesday to trade at its lowest levels in more than seven months as stockists off-loaded part of their holdings. Gold, which witnessed a free fall of 61.65 dollar (over Rs 2,500), or 7 per cent, at 804.15 dollar an ounce, drove other metals such as silver and platinum to a level last seen in December 21, 2007. Precious metals also slumped as crude oil fell below 113 dollar an ounce, reducing attraction of metals as an inflation hedge.

MUMBAI: As governments across the world announce fiscal stimulus packages, as part of their joint efforts to prevent a prolonged global recession, forecasting economic conditions is becoming all the more difficult, said Marc Faber, managing director of Hong Kong-based Marc Faber Ltd. "Around the turn of each year forecasts are made for the following year. I find making predictions amidst so much government interventions to be particularly difficult," said Faber, who is also the editor and publisher of the "Gloom, Bloom and Doom Report" According to him, the additional printing of money across economies for financing such stimulus packages would lead to "higher and higher fiscal imbalances".

MUMBAI: Prices of both the precious metals ? gold and silver ? plunged at the local bullion market on Friday as a stronger dollar and lower international prices kept precious metals in the defensive. Subsequently, stockists and investors sold a part of their holdings to avoid further losses. In London, the yellow metal lost more than 2% to three-week lows as a stronger dollar forced speculators to take profits. "This negative impact in overseas markets has mainly pulled down both gold and silver prices in local markets," a Mumbai-based bullion dealer said.

ET Now caught up with commodity expert Jim Rogers for his outlook on precious metals, global economy and the currency markets. Excerpts: ET Now: Let us start with your favourite topic, which is gold. Now gold prices have firmed up in 2014 perhaps on index reallocation or physical buying from Asia. Do you think the worst of the price action in gold is behind us? Jim Rogers: There are huge shorts that have developed in precious metals, as you know. So it is overdue for a rally.

NEW DELHI: Both gold and silver declined for the third day in a row in the bullion market here today on subdued demand at prevailing high levels amid a weakening global trend. While gold fell by Rs 100 to Rs 31,400 per 10 grams, silver shed Rs 10 to Rs 59,540 per kg. Traders said lack of demand at prevailing higher levels mainly kept pressure on gold and silver prices. Weak global trend where gold fell on speculation that a stronger dollar will curb demand for the metal as an alternate investment also influenced the sentiment, they added.